Nigeria made about N14.43 trillion from Value Added Tax (VAT) and Company Income Tax (CIT) in six years from 2015-2020, an analysis of data published today by the National Bureau of Statistics has shown.
The amount earned will come as a welcome development for the President Muhammadu Buhari administration, as the country strives to diversify its revenue stream amid a drop in oil revenue.
The breakdown of the tax earnings shows that within the period, tax earnings increased by 29.6 percent from N2.68 trillion in 2015 to N2.94 trillion received in 2020.
The lowest revenue in the review period was N1.7 recorded in 2016, followed by 2017, when N2.22 trillion was earned.
N2.52 trillion, N2.68 trillion was earned in 2018, and 2019 respectively.
A breakdown of the figures shows that through CIT alone Nigeria earned N7.94trillion in six years while VAT generated N6.44 trillion.
However, the 2020 CIT earning of N1.41 trillion is a 3.35 percent decline when compared to N1.63 trillion recorded in the previous year.
Sectoral distribution of Company Income Tax data for the fourth quarter(Q4)2020 reflected that the sum of N295.72 billion was generated as CIT in Q4 2020 as against N416.01bn generated in Q3 2020 and N362.01bn generated in Q4 2019 representing -28.91% decrease Quarter-on-Quarter and -18.31% decrease Year-on-Year.
VAT on the other hand grew by 29 percent, year on year to N1.53 trillion when compared to N1.18 trillion recorded in 2019 and and 38.2% increase as against N1.11 trillion in 2018.
Despite the growth, however, the VAT collected in 2020 still falls below the projection of N2.03 trillion in 2020.
By Dave Ibemere…
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